Issue 15, June 2014 - Business Development Asia LLC

JUNE 2014, ISSUE 15
ASIAN CONSUMER &
LUXURY NEWSLETTER
A quarterly newsletter of developments in the consumer & luxury products sector in Asia
CONTENTS
investment banking firm which advises on
cross-border transactions in Asia,
especially acquisitions, divestments,
joint ventures and capital raising.
We have offices throughout Asia, the
Middle East, Europe, and the US. If you
FASHION & LUXURY
1
FOOD & BEVERAGE
2
FOOD SERVICE
3
PERSONAL CARE
3
RETAIL
4
you, or you would like to speak to a
member of our Consumer & Luxury Goods
Practice team, please contact us at one of
our
offices
or
email
me
at
[email protected].
J u s t in e M a n n er in g ,
M a n a g in g D ir e c tor
jm a n n er in g @ bd a l lc . c o m
Fashion & Luxury
China Haidian Holdings, a Hong Kongbased manufacturer and distributor of
watches, timepieces, and enameled
copper wires, acquired The Dreyfuss
Group, a UK-based watch designer and
manufacturer, for £27m (US$45m).
Dreyfuss carries 3 brands, Rotary and
Dreyfuss & Co for watches, and Joseph &
Thomas for optician-related services.
Asian Consumer Companies Stock Indices for Selected Sectors
(12 months ending 28May14)
April 11, 2014
Four private investors have agreed to
acquire 31% of Taiya Shoes from its
controlling shareholders, for RMB272m
(US$44m). One of the private investors
will hold over 19% of Taiya Shoes after
this transaction and will become the
largest shareholder. Taiya Shoes is a
Chinese provider of sports shoe soles for
brands including Anta, Xtep and 361
Source: Capital IQ, BDA
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ASIA CONSUMER & LUXURY NEWSLETTER
JUNE 2014, ISSUE 15
shareholding of 29% in United Spirits to
55%. April 15, 2014
Lighthouse Funds, an Indian PE firm,
has acquired 13% of Bikaji Foods
International, an Indian snack foods
maker, for US$20m. Bikaji Foods
International reported revenues of
INR3.3bn (US$56m) in 2013. Bikaji will
use the proceeds from the transaction to
set up new plants and expand its
distribution network. April 12, 2014
Source: Capital IQ, BDA
Degrees. Taiya shoes reported revenues
of US$56m and EBITDA of US$3m in
2013. March 22, 2014
Guangdong Chj Industry, a Chinese
jewelry retailer, agreed to acquire an
additional 50% stake in Fion, a Hong
Kong-based handbags maker and seller,
from Hunters Worldwide Group for
US$29m in March 2014. Guangdong Chj
Industry also acquired another 13%
stake in Fion from Hong Kong-based
investment firm Zeppelin Tech Capital
for US$29m in May 2014. The Fion brand
is focused on young female executives.
Guangdong Chj will wholly own Fion after
these transactions. May 22, 2014
Food & Beverage
Bright Food Group, a Chinese
conglomerate, has agreed to acquire
56% of Tnuva Food Industries, an
Israeli provider of dairy and frozen food
products, from Apax Partners, a UKbased PE firm, for US$2,4bn. Tnuva Food
Industries is the largest dairy products
manufacturer in Israel, and its sales
account for 70% of the country's dairy
market as well as sales of meat, eggs
and packaged food. Tnuva operates
under 16 brands including Yoplait,
Sunforst and Mama Of. It reported
revenues of US$2bn in 2013. Tnuva has
also filed a prospectus with the Israeli
authorities should the acquisition not
close. May 22, 2014
Diageo, a UK-based beverage producer
and distributor, made a tender offer to
acquire an additional 26% of United
Spirits, an Indian manufacturer and
provider of alcoholic beverages, for
INR110bn (US$1,863m). United Spirits
carries a portfolio of more than 140
brands, including McDowell's No.1,
Royal Challenge, Signature Antiquity and
Black Dog, and reported revenues of
US$1.8bn in 2013. If fully tendered,
Diageo will increase its current
Lotte Chilsung Beverage, a Korean
manufacturer and seller of non-alcoholic
beverages, has agreed to acquire 56% of
Login Beverage, a Korean manufacturer
of bottled mineral water, for US$30m.
Login Beverage produces bottled
mineral water under the DMZ brand in
Korea. April 24, 2014
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Mizkan Group Corporation,
J U N E 2 0 1 3 , aI SJapanese
SUE 11
manufacturer and provider of food
products, has agreed to acquire the
North American Pasta Sauce Business of
Conopco, a US personal, home care and
food products company which is part of
Unilever, for US$2bn. The target
business owns the Ragu and Bertolli
brands, which collectively are the largest
branded pasta sauce producer and
distributor in the US. Ragu is the number
one brand across all key consumer
metrics in the US, while Bertolli has the
second largest market share in the
premium category. The target business
reported revenues of US$600m in 2013.
May 22, 2014
Sichuan Luzhou Minghao Wine, has
agreed to acquire 51% of Luzhou Kaile
Minghao Wine from Hubei Huang Shan
Tou Wine for RMB80m (US$13m). All
three companies are Chinese wine
producers and distributors. Luzhou Kaile
Minghao carries brands such as
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JUNE 2014, ISSUE 15
ASIA CONSUMER & LUXURY NEWSLETTER
Huangzhang Tianxia, Shihai Dongtian
and 72 Tou. Luzhou Kaile Minghao will
become wholly owned by Sichuan
Luzhou Minghao Wine after this
transaction. March 15, 2014
Food Service
CVC Partners, a UK-based PE firm, has
acquired a majority stake in Da Niang
Dumpling Holdings, a Chinese cuisine
quick-service restaurant operator in
China, for an undisclosed amount. Mr.
Wu Guoqiang, the founder, will remain
as a shareholder after this transaction.
Da Niang Dumpling Holdings operates
under the brand Daniang Dumpling and
has over 440 sites in 19 provinces across
China. It reported revenues of
RMB1,522m (US$248m) in 2013.
March 17, 2014
CVC Partners, the UK-based PE firm, has
acquired South Beauty, a Chinese
operator of fine dining restaurants, for
an undisclosed amount. CVC will
become the controlling shareholder of
South Beauty. Ms Zhang Lan, the
founder, will remain as part of
management. South Beauty operates
under the South Beauty, Lan Club and
Subu brands, with over 50 sites across
China. April 29, 2014
Keio Corporation, a Japanese national
railway operator, and Kikkoman
Corporation, a Japanese food provider,
have agreed to jointly acquire 11% of
Ukai, a Japanese restaurant chain
operator, for ¥1.3bn (US$12
restaurant portfolio includes various
Japanese cuisine concepts such as sushi
Source: Capital IQ, BDA
bars, grills and teppanyaki under brands
including Ukai Toriyama, Ukai Chikutei,
Tofuya Ukai Owada, Tofuya Ukai
Saginuma, Tokyo Shiba Tofuya Ukai.
March 14, 2014
LCapital Asia, the Asian PE arm of
French luxury goods company LVMH
Moet Hennessy Louis Vuitton, has
acquired a majority stake in Singaporean
casual dining chain operator Crystal
Jade Culinary Concepts Holding, for an
undisclosed consideration. Crystal Jade
serves mainly traditional Shanghainese
cuisine, through over 100 sites in 18
cities in 9 countries. The company
reported
revenues
of
S$250m
(US$200m) in 2013. March 30, 2014
Personal care
Ginza Stefany Cosmetics, a Japanese
manufacturer
and
distributor
of
cosmetics and perfumes and a
subsidiary of Korean company LG
Household & Healthcare Company,
has acquired R&Y Corporation, a
Japanese provider of cosmetics and
health supplements, for
¥4.6bn
(US$45m). R&Y reported EBITDA of ¥1bn
(US$10m) in 2012. February 27, 2014
LCapital Asia, has acquired 20% of Dr.
Wu Skincare, a Taiwanese company
engaged in R&D, manufacturing and
marketing of skin health and beauty care
products, for NT$750m (US$25m). Dr.
Wu Skincare operates under the brand
name Dr. Wu and distributes its products
worldwide via drugstores and other retail
chains and online. The transaction will
help Dr. Wu expand in China. March 1, 2014
KOSÉ
Corporation,
a
Japanese
cosmetics provider, acquired 94% of
Tarte, a US-based provider of naturallyderived cosmetics and skin care
products, from Encore Consumer, a US
PE firm, for US$135m.
are sold under the brand name Tarte
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ASIA CONSUMER & LUXURY NEWSLETTER
through
third-party
distribution
channels such as Sephora, ULTA and
, in addition to its own
website. It reported US$52m in
revenues. March 17, 2014
Tano Capital, a US private equity firm,
acquired a minority stake in Sanghvi
Brands, the India-based company that
operates wellness brands including spa,
gym and salons, for an undisclosed
consideration.
Sanghvi
has
the
exclusive right to develop Spa
, Holyfield Gyms and Warren
Tricomi Salons outlets in India. It
currently has 20 Spa / Gym / Salon
projects underway across 11 cities in
India. Under the terms of the agreement,
Tano Capital will acquire 20% to 30% of
Sanghvi Brands for US$10m.
March 10, 2014
Retail
Flipkart, an Indian online retailer,
acquired 100% of Myntra, an online
fashion retailer for US$300m. Flipkart is
the largest online retailer in India, while
Myntra is the largest e-commerce store
for fashion and lifestyle products in
India. Myntra reported revenues of
US$68m in FY2013 and aims to double
the revenues in FY2014. May 23, 2014
Hopscotch, an Indian baby productfocused flash sales site, acquired
SkoolShop, an Indian online school &
educational supplies store, for an
undisclosed
amount.
After
the
offers will be
integrated into
May 8, 2014
Temasek Holdings, the sovereign
wealth fund of the Government of
Singapore, has agreed to acquire 25% of
A.S. Watson, a Hong Kong-based retail
store
operator,
from
Hutchison
Whampoa,
a
Hong
Kong-based
conglomerate owned by Li Ka Shing, for
HK$44bn (US$5,666m). A.S. Watson
operates over 10,500 retail stores
worldwide, ranging from supermarkets,
health & beauty stores, perfume and
cosmetics stores, electronics retailers,
and wine shops, under brands like
Watsons,
FORTRESS,
ParknShop,
Superdrug, Rossmann and ICI Paris.
Hutchison Whampoa will retain a 75%
stake in A.S. Watson and is rumored to
prepare an IPO for the subsidiary. A.S.
Watson reported net profit before
taxation of HK$8.8bn (US$1,1bn) in
2013. April 16, 2014
JUNE 2014, ISSUE 15
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ASIA CONSUMER & LUXURY NEWSLETTER
JUNE 2014, ISSUE 15
Selected Asia Consumer & Luxury Related Transactions with Multiples (3 months ending 25May14)
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ASIA CONSUMER & LUXURY NEWSLETTER
Business Development Asia is an
investment banking firm that advises
on
cross-border
mergers
and
acquisitions, distressed situations,
capital raisings and restructurings.
Our focus is on transactions with an
Asian angle or story, including the
Middle East, with enterprise values
of up to US$1bn. BDA has 10 offices
and
over
throughout
85
professional
Asia,
the
U.S.
staff
and
Europe. For further information on
articles in this newsletter, please
contact the offices listed.
Justine Mannering
Managing Director
[email protected]
www.bdallc.com
[email protected]
JUNE 2014, ISSUE 15
NEW YORK
Euan Rellie, [email protected]
Business Development Asia LLC
1270 Avenue of the Americas, Suite 2310
New York, NY 10020, USA
T (1) 212-265-5300
F (1) 212-265-4300
LONDON
Andrew Huntley, [email protected]
Business Development Asia Ltd
33 Cavendish Square
London W1G 0PW, United Kingdom
T (44) 20-7182-4518
F (44) 20-7182-4100
SHANGHAI
Jeffrey Wang, [email protected]
Business Development Asia Co Ltd
The Center, #1602, 989 Changle Road
Shanghai, 200031, China
T (86) 21-5407-5580
F (86) 21-5407-5680
HONG KONG
Paul DiGiacomo, [email protected]
Business Development Asia (HK) Ltd
Suite 905, ICBC Tower
3 Garden Road, Hong Kong
T (852) 2537-9565
F (852) 2537-4406
BEIJING
Charles Maynard, [email protected]
Business Development Asia (HK) Ltd
Beijing Branch Office
Unit 1108, Level 11, China World Office 1
1 Jianguomenwai Avenue
Chaoyang District
Beijing, 100020, China
T (86) 10-5737-9029
TOKYO
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Business Development Asia K.K.
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Tokyo, 105-6021, Japan
T (81) 3-3433-5800
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SEOUL
Heejun Yang, [email protected]
Business Development Asia
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BAHRAIN
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Business Development Asia
Meral Building #2572, Road #2833
4th Floor, Office #42, Block #428
PO Box 30295, Seef District
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T (973) 1758-1336
MUMBAI
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Business Development Asia (HK) Ltd
India Branch Office
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HO CHI MINH CITY
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Vietnam
Tel (84) 8-62-888-755